A protocol suddenly changes its contract logic. Are the coins users deposited still safe?
One key point: The proxy pattern splits a contract into two parts: the proxy contract that users interact with handles storage and assets, while the actual business logic is written in a separate logic contract.
Many protocols entrust upgrade permissions to multisigs or governance votes, and add a timelock, so upgrades take several days to go into effect, giving users time to withdraw.
Remember this instead of memorizing a bunch of jargon. Every yield comes with its own risks, so think about the worst-case scenario first.
Back to the market: $ETH is currently at 2230.3, 24h -7.82%.
#ETH
One key point: The proxy pattern splits a contract into two parts: the proxy contract that users interact with handles storage and assets, while the actual business logic is written in a separate logic contract.
Many protocols entrust upgrade permissions to multisigs or governance votes, and add a timelock, so upgrades take several days to go into effect, giving users time to withdraw.
Remember this instead of memorizing a bunch of jargon. Every yield comes with its own risks, so think about the worst-case scenario first.
Back to the market: $ETH is currently at 2230.3, 24h -7.82%.
#ETH
